ACCT 2013 Lecture Notes - Lecture 8: Internal Control, Debit Card
10 Feb 2017
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Control activities: p control, separation of cities, physical controls. Limited access to assets . (only authorized ppl: proper authorization. Only manager= authorized make purchases over certain : employee management. Employee= dully aware of company"s internal control procedures, ethical responsibilities, channels for reporting illegal activities: e-commerce controls. Prevent unauthorized access: detective control, reconciliation. Mgmt= periodically determine physical assets= acct records: performance reviews. Compare amounts sold of (related) products: audits. Hire independent auditor (= access internal control procedures) Responsibilities for internal control: ceo & cfo. Provide opinion on mgmt"s assessment of internal control. Effective internal control system= not turn bad employee into good one. =2+ ppl acting together to circumvent internal control. Top-level employees overriding= chance to commit fraud. Effective internal control & ethical employees alone. Components of total cash balance: components of cash, coins & currency, checks received, savings & checking accounts, credit & debit card sales, cash equivalents. Collected within 3 months (from day of purchase)
